(1) The government formed by merger of existing special districts shall assume all indebtedness of, and receive title to all property owned by, the preexisting special districts. The proposed charter shall provide for the determination of the proper allocation of the indebtedness so assumed and the manner in which said debt shall be retired.
(2) Unless otherwise provided by law or ordinance, the dissolution of a special district government shall transfer the title to all property owned by the preexisting special district government to the local general-purpose government, which shall also assume all indebtedness of the preexisting special district.
In sum, the local governments would be responsible for the debts of the Reedy Creek entity - BUT it would also take over ownership of the entity's assets. Does that mean Orange County would take over Disney World??
“Unless otherwise provided by law or ordinance,”
So change the law.
L
No, because Reedy Creek doesn't own Disney World. They own roads, water and sewage systems, electrical grids, undeveloped land, fire department districts, contracts for police protection, things like that. Those are what Orange County will be getting and which they will now have to maintain and pay for.
In sum, the local governments would be responsible for the debts of the Reedy Creek entity - BUT it would also take over ownership of the entity's assets.That makes more sense. Whomever owns the debt controls the assets and will be expected to charge rent or impose some fees to retire that debt over time.
ASSETS ASSETS ASSETS....Take what you need to pay off the debt. The order in which you take them will probably come into play.
Yup - and the state can give the local governments money to cover the debt. The local governments can then rent the assets back to Disney, preferably at the same rate as everyone else pays for commodities (roads, utilities) or at “market adjusted” rates for unique properties (buildings and attractions.)